Kalshi Mandates Employment Verification for Select Prediction Market Wagers

The Commodity Futures Trading Commission (CFTC) is taking its first formal step toward regulating prediction markets, proposing a rule that would require a structured review of contracts tied to activities like terrorism, assassination, war, gaming, or conduct unlawful under federal or state law. The notice of proposed rulemaking, reported by CoinDesk, aims to establish a clear framework for determining whether such contracts fall under the Commodity Exchange Act and, if so, whether they are contrary to the public interest. This move comes amid a surge of arrests for alleged “insider trading” on prediction platforms, with cases involving everything from military operations to Google Search data.

Separately, Kalshi announced on Wednesday that it will now mandate employment verification for users placing certain types of wagers on its platform. The new requirement is designed to curb potential manipulation and insider trading by ensuring that bettors do not have access to non-public information that could give them an unfair advantage. While the specific markets subject to this verification have not been fully detailed, the policy signals a broader push toward greater accountability and transparency in the fast-growing prediction market sector. As regulatory scrutiny intensifies, platforms like Kalshi are moving to self-regulate, aiming to prevent the kind of abuses that have already led to criminal charges elsewhere.